Stocks Surge as Fed Statement Relieves Rate Worries

U.S. stocks rallied on Wednesday after the Federal Reserve indicated a more gradual view concerning rate hikes this year. At close, the Dow Jones Industrial Average lately surged 227.11 points, or 1.27%, to 18,076.19. The S&P 500 rallied 25.22 points, or 1.22%, to 2,099.50. The Nasdaq Composite surged 45.39 points, or 0.92%, to 4,982.83.

The Fed took a step closer to its first rate hike since ’06 by removing the word ‘patient’ from its statement. But the central bank still reassured Wall Street it’s in no rush to tighten policy.

Target Corp. plans to boost pay of all its workers to at least $9 an hour starting next month, following similar moves by rivals Wal-Mart Stores Inc. and TJX Cos. as competition for lower wage workers heats up.

Guess Inc. (GES), the apparel and accessories company, beat fiscal fourth-quarter profit expectations. For the quarter ended Jan. 31, earnings declined to $53.9 million, or 63 cents a share, from $69.3 million, or 82 cents a share, in the same period a year ago. Revenue fell 9.3% to $696.7 million.